Revenue is recognized when sale is made or services arerendered. Explain three exceptions to the general rule.
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please mark this as the brainliest answer
Explanation:
the exceptions are
1. hire purchase - when goods are sold on hire purchase system, the amount received in installments is treated as revenue.
2.long term construction contract- the long term projects like construction of dams,highways etc.have long gestation period. income is recognised on proportionate basis of work certified and not on the completion of contract .
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